Universal Health Services 'B'

Universal Health Services reported at the Wells Fargo conference slower but still positive growth and lowered its full-year guidance for adjusted admissions to 1.5–2.5%. The company now expects an $85 million hit from changes in the insurance market and has adjusted full-year mid‑point EBITDA down by about 3%, but still sees roughly 3% EBITDA growth year over year. UHS is expanding capacity (including 177 new beds) and bolstering outpatient psychiatry through the acquisition of Talkspace and the "Thousand Branches" initiative, but continues to face headwinds in surgical services and from market/political factors. » More on de.investing.com

S&P Global Ratings has raised the outlook for Universal Health Services from “stable” to “positive” and affirmed the issuer rating at “BB+”. For planned senior notes S&P assigned an issue rating of “BBB-” and a recovery rating of “2”. The agency sees room for an upgrade if UHS keeps leverage in the 2.0–3.0x range; the issue is intended to refinance a Sept. 2026 bond of $700m and to finance parts of the Talkspace acquisition. S&P expects slower revenue growth in 2026–2027, a slightly lower adjusted EBITDA margin in 2026, and share buybacks of about $800m in 2026 (up to $1.3bn in 2027), and sees leverage below 2.5x in 2026/2027. » More on de.investing.com

Universal Health Services reported Q2/2026 earnings per share of $5.35, missing the consensus of $5.95, although revenue of $4.64 billion was slightly above estimates. Management trimmed the full-year earnings guidance to $22.28–$23.65 and set the midpoint below the analyst consensus, after which the stock fell sharply in after-hours trading. Analyst downgrades and concerns about staffing shortages, payer mix and Medicaid risks amplified the negative market reaction and cloud the outlook for near-term margin improvement. » More on de.investing.com